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Ecoboard Industries Ltd.

BSE: 523732 Sector: Others
NSE: WESTERNBIO ISIN Code: INE866A01016
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NSE 05:30 | 01 Jan Ecoboard Industries Ltd
OPEN 18.20
PREVIOUS CLOSE 17.35
VOLUME 18911
52-Week high 19.28
52-Week low 2.65
P/E
Mkt Cap.(Rs cr) 31
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 18.20
CLOSE 17.35
VOLUME 18911
52-Week high 19.28
52-Week low 2.65
P/E
Mkt Cap.(Rs cr) 31
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ecoboard Industries Ltd. (WESTERNBIO) - Auditors Report

Company auditors report

To The Members of Ecoboard Industries Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying financial statements of Ecoboard Industries Limited("the Company") which comprise the Balance Sheet as at 31stMarch2021 the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and the notes to standalone financial statements including a summary of thesignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (‘Ind AS') and other accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2021 and its Profittotal comprehensive income its cash flows and the changes in Equity for the year ended onthat date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditors'Responsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report along with our description of how our audit address thematters.

Key audit matter How the key audit matter was addressed in our Audit
Trade Receivable Our audit procedures included:
Trade receivables net of impairment allowance amount to Rs. 629.57 lakh as on 31st March 2021. Impairment provision carried in the books as on 31st March 2021 is Rs. 59.75 lakh. • We have performed the following process in relation to management's judgment in identification of impairment of value of receivables and adequacy of impairment provision.
Management judgement is involved in identifying impairment in the value of the receivables as well as in formulating a policy for creating provision against impairment which has adverse effect on the profits of the company. (i) We have referred to the defined policy stipulating the methodology of making impairment provision in respect of overdue receivable amounts. We have also reviewed age wise analysis in respect of receivables and ensured that the provisioning is made according to such policy.
(ii) We have sought information and explanations from management regarding the status of receivables for the purpose of ensuring adequate impairment provision. (iii) We have also tested subsequent collection made from the overdue receivables.

Information Other than the Financial Statements and Auditors' Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and Analysisand Board's Report including Annexures to Board's Report (the "annual reports")but does not include the standalone financial statements and our auditors' report thereon.The reports are expected to be made available to us after the date of this auditors'report.

Our opinion on the standalone financial statements does not cover the other informationin the annual report and we do not and will not express any form of assurance conclusionthereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information in the annual report when it becomes available and indoing so consider whether the other information is materially inconsistent with thestandalone financial statements or our knowledge obtained during the course of our auditor otherwise appears to be materially misstated.

When we read the reports if we conclude that there is a material misstatement of otherinformation we are required to communicate those facts to those charged with governanceas required under SA 720 ‘The Auditor's responsibilities Relating to OtherInformation'. We have nothing to report at this moment in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the

Company and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Company's Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

Auditors' Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditors' report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the

Central Government of India in terms of sub-section (11) of Section 143 of theCompanies Act 2013 we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the said Order.

2. As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended;

e) On the basis of the written representations received from the directors as on 31stMarch 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B; and Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year ended31st March 2021 is in accordance with the provisions of section 197 read withthe schedule V to the Act.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit & Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 38(A)(b) to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsthatmay result in material foreseeable loss.

(iii)Currently there are no amounts held by the Company that are required to betransferred to the Investor Education and Protection Fund hence we do not comment on thesame.

For B. M. CHATURVEDI & CO
Chartered Accountants
ICAI FRN: 114317W
Sd/-
B. M. Chaturvedi
Place : Mumbai Partner
Date: 29/06/2021 ICAI M.N.017607
UDIN: 21017607AAAAAG2713

Annexure A to the Independent Auditors' Report

As required under CARO 2016 and referred to in Paragraph 1 under ‘Report on OtherLegal and Regulatory Requirements' of our report of even date on the financial statementsof Ecoboard

Industries Limited for the year ended 31st March 2021.

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of two years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of records of the Company except one office property situated at Ahmedabadwhich is yet to be registered in the name of the Company title deeds of other immovableproperties are held in the name of the Company.

2. According to the information given to us physical verification of inventory wasconducted by the management during the year at reasonable intervals.According to theinformation and explanations given to us no material discrepancies were noticed onphysical verification of inventories.

3. According to the information given to us the Company has not granted any loanssecured and unsecured to companies firms or other parties listed in the registermaintained under Section 189 of the Companies Act 2013. Accordingly paragraphs3(iii)(a)(b) and (c) of the Order are not applicable.

4. The Company has not given loans investments guarantees and security. Accordingly

Paragraph 3(iv) of the Order is not applicable.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public. The provisions of Sections73 to 76of the Companies Act 2013 and the rules framed thereunder are not applicable.

6. We are informed that the Central Government has not prescribed maintenance of costrecords under Section 148(1) of the Companies Act 2013 for the Company's products.

7. (a) According to the information and explanations given to us and on the basis ofour examination of records of the Company the Company is not regular in depositingundisputed statutory dues including Provident Fund Income-tax Value Added TaxService-tax Goods and Service tax and other material statutory dues applicable to it andin many cases payments were made after due dates. According to the information andexplanations given to us Tax deducted at Source of Rs.40.58 lakh Value Added Tax andCentral Sales Tax of Rs. 146.93lakh Goods and Service tax (reverse charge) of Rs. 17.63lakh Provident Fund of Rs. 8.74 lakh ESIC Rs 0.04 lakh and Profession tax Rs2.42 lakhwere in arrears as at 31/03/2021 for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us following amounts ofduty and taxes were under dispute hence not paid:

Nature of dues Period Amount Rs. in lakhs Forum where the dispute is pending
Central Excise duty 2003-04 28.45 Custom Excise & Service Tax Appellate Tribunal
Central Excise duty 2004-05 1.48 Custom Excise & Service Tax Appellate Tribunal
Central Excise duty 2006-09 0.66 Custom Excise & Service Tax Appellate Tribunal
Central Excise duty 2006-09 400.13 Commissioner of Central Excise (Appeals)
Central Excise duty 2009-10 6.19 Custom Excise & Service Tax Appellate Tribunal
Central Excise duty 2008-10 336.98 Custom Excise & Service Tax Appellate Tribunal
Central Excise duty 2010-13 95.86 Custom Excise & Service Tax Appellate Tribunal
Central Excise duty 2012-14 57.75 Custom Excise & Service Tax Appellate Tribunal
Central Excise duty 2012-14 24.91 Commissioner of Central Excise (Appeals)
Central Excise duty 2015-16 79.02 Custom Excise & Service Tax Appellate Tribunal
Central Excise duty 2004-05 28.35 Custom Excise & Service Tax Appellate Tribunal
Central Excise duty 2016-18 26.03 Custom Excise & Service Tax Appellate Tribunal
Central Sales tax 2011-12 61.77 Commissioner of Sales tax (Appeals)
1147.58

8. According to the information and explanations given to us by the management thecompany has not defaulted in repayment of loans or borrowings to a financial institutionbank or government or dues to debenture holders.

9. According to the information and explanation provided to us Company has not raisedmoney by way of initial public offer or further public offer (including debt instruments)and term loans during the year. Accordingly paragraph 3(ix) of the Order is notapplicable.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations given to us and based on ourexamination of records of the Company the Company has paid/ provided managerialremuneration during the year in accordance with the provisions of section 197 read withSchedule V to the Companies Act 2013.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to the information and explanations given to us and based on ourexamination of records of the Company transactions with related parties are in compliancewith Sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

14. According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly Paragraph 3(xv) ofthe Order is not applicable.

16. The Company is not required to register under Section 45-IA of the Reserve Bank ofIndia Act 1934.

For B. M. CHATURVEDI & CO
Chartered Accountants
ICAI FRN: 114317W
Sd/-
B. M. Chaturvedi
Place : Mumbai Partner
Date: 29/06/2021 ICAI M.N.017607
UDIN: 21017607AAAAAG2713

Annexure B to the Independent Auditors' Report

(Referred to in paragraph 2(f) under "Report on Other Legal and Regulatory

Requirements' Section of our report of even date)

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-Section 3 of Section 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of EcoboardIndustries Limited (‘the Company') as of 31st March 2021 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for the establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI').Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".

For B. M. CHATURVEDI & CO
Chartered Accountants
ICAI FRN: 114317W
Sd/-
B. M. Chaturvedi
Place : Mumbai Partner
Date: 29/06/2021 ICAI M.N.017607
UDIN: 21017607AAAAAG2713

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